Disney has got debt refinancing

[mclubber]

News from RTHK:

Disney reaches agreement with creditors


The Walt Disney company has reached agreement with creditors to lift loan restrictions for a year, to allow it to try to attract more visitors to its struggling theme park in Hong Kong. The restrictions - called debt covenants - relate to a commercial loan of 2.3 billion Hong Kong dollars. The project is a joint venture between Disney and the Hong Kong government, which holds a 57 percent stake.


Does this mean that they removed the financing barriers to prevent them from building bigger attractions?

[PennysBayChronicle]

Re: Disney has got debt refinancing

News from RTHK:

Disney reaches agreement with creditors


The Walt Disney company has reached agreement with creditors to lift loan restrictions for a year, to allow it to try to attract more visitors to its struggling theme park in Hong Kong. The restrictions - called debt covenants - relate to a commercial loan of 2.3 billion Hong Kong dollars. The project is a joint venture between Disney and the Hong Kong government, which holds a 57 percent stake.


Does this mean that they removed the financing barriers to prevent them from building bigger attractions?

I don't call it restrictions, it is more like conditions of borrowing.

e.g. I would lend you money on the conditions that u could bring in X number of guests for 1st year of operation, Y number of guests for 2nd year of operation etc. If you couldn't fulfil your promise, i would demand immediate repayment.

There is nothing to stop them from building bigger attractions if they have the money to put in.

[mclubber]

Re: Disney has got debt refinancing

Even more news on HKDL and the government from RTHK:

HK Disneyland urged to revamp strategy



The government has urged the management of Hong Kong Disneyland to enhance efficiency and revamp its marketing strategies to attract more visitors. This came as the Walt Disney company announced that it had reached agreement with creditors to lift loan restrictions for a year, so it could invest more money in the park. And the government said that it was prepared to discuss financial arrangements for expansion. The Disney theme park opened here in September 2005. Since then, it has failed to meet attendance targets.

[Witches of Morva]

Re: Disney has got debt refinancing

ORGOCH: Well, good Lord!! Have ya's ever seen such a bunch a constipated goomers in yer whole life? By now the whole WORLD knows what needs ta be done 'bout this dinky little theme park. Instead a havin' all these gum flappin' sessions, what they OUGHT ta do is start takin' some real action. Start buildin' the park out instead a just talkin' 'bout it.

ORWEN: For once I agree with you, old biddy. I mean, if there was a man drowning in a pond of water--while all these Life guards just stood around watching him, making suggestions on the best way to save him without actuallly DOING anything to save him, the man would just die. I'd hate to see the same thing happen to Hong Kong Disneyland.

[Loomis]

Re: Disney has got debt refinancing

This article offers some additional detail:

Disney to forgo royalties on Asian park
11th November 2007, 5:02 WST

http://www.thewest.com.au/aapstory.a...oryName=435563

The Walt Disney company is to forgo royalties from it underperforming Hong Kong theme park as part of a plan to help the park boost attendance figures, a Hong Kong news report said.

The company also said it has come to an agreement with its creditors to remove debt conditions on its $US293 million ($A316.74 million) loan for one year to allow it to make further investments in the park.

[Witches of Morva]

Re: Disney has got debt refinancing

ORGOCH: Only thing I wanna' hear from now on is what dang RIDES is they gonna' be puttin' inta Ping Pong Dizzyland!!!